Going into next week, the markets will look forward to RBI MPC meet.
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, May 31, 2025: Equity markets performance remained mixed this week. While the larger indices like Nifty 50 and Sensex 30 remained flattish, BSE Midcap and BSE Smallcap indices saw positive gains. On the sectoral front, the performance reflected the mixed market sentiments. BSE Capital Goods and BSE Realty indices were the outperformers. Global equity markets witnessed continued volatility this week amid news flow around US court rulings on tariffs, slow progress in trade negotiations of the US with major economies and elevated global bond yields. Southwest monsoons have come in earlier than its scheduled arrival and expected normal monsoon should be positive for the rural economy.
Going into next week, the markets will look forward to RBI MPC meet. With inflation trajectory staying well under control, there exists room for the RBI to prioritize growth. Q4FY25 result season performance remained mixed with aggregate earnings growth of the Nifty-50 Index at 3.8% yoy so far.
Amol Athawale, VP-Technical Research, Kotak Securities, adds: In the last week, the benchmark indices witnessed lackluster activity. The Nifty ends 0.41 percent lower, while the Sensex was down by 270 points. Among sectors, the PSU Bank index gained the most, rallying over 4 percent, whereas the FMCG index lost the most, shed 2.29 percent. Technically, the week opened on a positive note, but once again, the market witnessed profit booking at higher levels. On weekly charts, it has formed a small bearish candle, and on intraday charts, it is holding a weak formation, which is largely negative.
We believe that the 20-day SMA (Simple Moving Average) and the level of 24,650/80900 will act as key support zones for short-term traders, while 25,000/82200 will serve as a key resistance area for the bulls. As long as the market remains between the 24,650/80900 and 25,000/82200 ranges, a sideways, range-bound texture is likely to continue. On the upside, a successful breakout above 25,000/82200 could push the market towards 25,250/82900. Further upside may also continue, potentially lifting the index up to 25,500/83700. On the other hand, a breach of 24,650/80900 could change the sentiment. Below this level, the market is likely to retest the levels of 24,450/80300–24,300/79800.
For Bank Nifty, the higher bottom support is placed at 55,000. Above this, the uptrend wave is likely to continue towards 56,500–57,000. However, below 55,000, the uptrend would become vulnerable. In that case, we could see a correction down to 54,500–54,200.
